Apple negotiates electric vehicle battery supply with CATL and BYD

Apple is in preliminary talks with China’s CATL and BYD over battery supplies for its planned electric vehicles, four people familiar with the matter said.

Apple negotiates electric vehicle battery supply with CATL and BYD

(Image credit: Apple)

Apple prefers to use lithium iron phosphate batteries, which replace nickel and cobalt with iron, and are cheaper, four sources said. One of Apple’s conditions for potential battery suppliers is to build a manufacturing plant in the United States, but CATL has hesitated to build a factory in the United States because of Sino-U.S. relations and cost issues, two of the people said.

The talks could change, the sources said, and it was unclear whether Apple would reach a deal with CATL or BYD. It is unclear whether Apple will also negotiate with other battery makers. Apple declined to comment, and the company has so far not announced its car plans. CATL, the world’s largest car battery maker, and BYD, the world’s fourth-largest car battery maker, also declined to comment. CATL supplies batteries to mainstream automakers such as Tesla.

Apple has been working on self-driving technology and plans to produce a passenger car in 2024. Apple’s planned electric car could feature its breakthrough battery technology, people familiar with the matter said earlier, and it was unclear whether the company’s talks with CATL and BYD involved Apple’s own technology or design.

Apple’s talks with the two companies come as the U.S. government seeks to attract more electric-car makers to build cars locally. U.S. President Joe Biden has proposed a $1.7 trillion infrastructure plan, including tax breaks and subsidies for battery makers.

As automakers accelerate their transition to electric vehicles to meet stricter emissions regulations and combat global warming, many battery makers are ramping up production to meet soaring global demand for batteries.

Chinese battery makers are expected to grow faster than their overseas counterparts, thanks to further expansion of China’s electric vehicle market, South Korean market research firm SNE Research said in a June report. Last week, CATL was revealed to be planning to build a new electric vehicle battery factory in Shanghai, continuing to consolidate its position as the world’s largest electric vehicle battery supplier with a violent expansion offensive. The new factory will be located near Tesla’s China factory.

Source: Gasgoo

Author: Gu Jiaojiao

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